Airbnb Rental or a Dream Home? A Historic Hudson Valley Farmhouse for Sale
by Realtor Maxwell Alexander
As a licensed realtor and a part of the Millennial generation, I see a very prominent and overwhelmingly obvious trend in real estate ownership. Or should I say, sharing economy has finally settled in mind and hearts of the new generation of American homebuyers?
It used to be THE American Dream: Go to school – charge it on the student loans, get married – charge it on a credit card, buy a house – pay with a mortgage… Then expect the economy to grow… Then foreclose and get disappointed because it was all a trap…
Millennials are now the face and the Purchasing Power of the American economy with 40% and growing real estate market share and when it comes to investing in their future – they are learning from the mistakes their moms and dads made, and approach real estate purchases from a totally different perspective.
The sharing economy started taking roots years ago with Lyft and Uber disrupting otherwise closed off and highly regulated transportation industry. Now that it’s all cleared, the Hospitality industry is next with platforms like Airbnb and VRBO taking over huge chunks of the market and disrupting not only vacation and travel real estate market, but the entire housing market all around the Globe.
Millennials, who are basically glued to their phones, happened to learn how to leverage all the advantages of the Sharing Economy and now applying the knowledge when it comes to real estate investment. So what do they think about the whole “forever home” idea? Well, it is rather “forever making money home” or perhaps “pay for itself” kind of a deal. Property taxes are high and the cost of homeownership is just overwhelming for most of the population, so having supplemental income like an Airbnb rental is now a must!
Most of my clients are from New York City and they now shop for second homes in the Hudson Valley. They are not only looking to buy a vacation home for their weekend getaways but also are looking to buy Airbnb rental in the Hudson Valley. They do plan to stay in their Hudson Valley homes for a couple of weeks out of the year, but in the meantime, they want their second homes to not only pay their own mortgage but also generate some supplemental income for their owners.
Airbnb and similar platforms make it easier to market and manage vacation rentals and as we speak, Hudson Valley businesses are adopting and embracing the new sharing economy and support new trends in the hospitality market. Many municipalities are starting to catch up with the regulation of the new vacation rental market that might as well become a replacement of the collapsed manufacturing industry.
In any case, we live in an exciting time of democratization of the real estate market and the evolution of what a Dream Home means for most of us.